The Central Bank of Europe (ECB) has begun to consult the public on its plan to own a digital asset known as Digital Euro.
ECB sees this as a means of complementing the physical Euro and also a way to help the continent improve its payment method and infrastructure.
The move had become necessary since the world is gradually moving towards a future where physical cash would become obsolete and unnecessary to carry out transactions. Coupled with the fact that most central banks of countries in the world are beginning to work on their own digital currency.
The ECB is looking to set up a Digital Euro which would be acceptable by all 19 countries on the continent and the crypto asset would also have the full backing of the Central Bank.
A consultation document was relaeased by the European Central Bank through which it planned to collect the views of private individuals, trade unions, business organizations, schools etc on how the workings of the digital euro should be.
Digital Euro will not replace physical Euro
Upon the bank’s commitment towards accelerating for an asset that will provide an alternate opportunity to carry out different digital payments, the ECB has made it clear that its pursuit of “digital euro will not replace physical cash, instead, it is going to serve as a complement to it.”
ECB made it known that it is in the business of digital currency because it does not want to lag behind virtual currencies like Bitcoin or the yet to be released virtual currency being pushed by Facebook, Libra.
The bank believes that if citizens of member countries are to fully embrace these virtual currencies, it could have a dilapidating effect on banks in the continent who have not yet fully embraced the current digital currency trend.
The digital euro, like other virtual currencies, could also rely on the use of Blockchains to confirm and carry out transactions.
